Could not help noticing that KSWS now trades at $3.90
Are you keeping track of stocks after you close the position?
How many times did a stop loss prevent a, say, 30% loss vs. not being able to hold on to a stock which went up after a short hiccup and you could have taken a gain of, say 5% a week later?
As you may know by now, I'm very obstinate in not
admitting I'm wrong and not
taking a (small) loss, in the hope of avoiding a larger one. I'm aware that some may criticize my system, but I'm happy with it.
BWA isn't doing much for my self esteem either.
I try not to look back at every trade and second-guess my decisions. If I give a position a little more room then where do I draw the line if it keeps going against me?
For this year I have closed 17 trades, 11 of them at a loss or break even.
The first trade of the year (SCSS) was the worst one to look back on. I took it of at break even, didn’t even give it a chance to be a loser and it never traded lower than my sell price and has advanced ever since. It’s up 47%. I’ll rationalize that I would have jumped out with a 20% gain and still have had sellers remorse.
However SPII was sold for a 3% loss and is now down about 35%
Other than those 2 there is nothing that stands out as having an extreme move after I sold. .
As much as you hate to be wrong I still maintain it is near impossible to be right all the time. By not dealing with your losers, all you accomplish is to tie up you capital.
So far this year my strategy has not performed very well, but I still have all the money I started with. .
"In theory there is no difference between theory and practice. In practice there is." Yogi Berra
When I’m wrong, I’m gone and I’m not wrong long!!